Short term capital loss is allowed to be set off only against the Long term and short term capital gain. It cannot b
The short term capital losses can be carried forward for 8 assessment years immediately.
Example:
Mr B, a resident furnishes the following details:
| Particulars | Amount |
| Income from Salary | 45,000 |
| Long term capital gain | 19,000 |
| Short term capital loss | (25,000) |
What is the total income to tax for the AY 2019-20?
Solution: Total Income of Mr B
| Particulars | Amount | |
| Income from Salary | 45,000 | |
| Capital Gains | ||
| Long term capital gain | 19,000 | |
| Short term capital loss | (19,000) | 0 |
| Total Taxable Income | 45,000 |
*Balance Short term capital loss of Rs 6,000 [25,000 – 19,000] has to be carried forward.